Embraer’s re-engined E-Jet to hurt Bombardier

Embraer SA’s announcement this week that it will launch a re-engined version of its popular E-Jet is expected to deal a blow to Bombardier Inc., according to Turan Quettawala, Scotia Capital analyst.

The Brazilian aircraft manufacturer said Tuesday it had chosen Pratt & Whitney’s PurePower Geared Turbofan engine for what it is calling its second-generation E-Jet.

The aircraft is expected to enter service in 2018 and be formally launched “later this year.” Embraer said it aims to offer “double-digit” improvements in fuel burn, maintenance costs, emissions and noise.

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The second-generation E-Jet will also feature larger wings, fly-by-wire flight controls, and other advancements.

Mr. Quettawala said the timing seems to be protracted for a re-engined plane, which he said suggests there are some contingencies for delays and/or changes. But also opens the possibility of stretch of the plane that could easily add 10 to 15 seats to its current configuration, which can reach 124-seats in a high-density configuration, he said.

“We think that E-Jet redesign is a negative for [Bombardier] as it will increase the competitive threat for both CRJs and CSeries,” he said. “From a marketing standpoint, a family of aircraft spanning 85-125+ seats would be a strong offering for mainlines looking to manage loads/frequencies.”

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